mail-box-lead-generation

written by | August 9, 2022

ERP System Integration: Benefits, Types, and Challenges

×

Table of Content


Companies must provide excellent customer experiences throughout customer interaction in the present economic scenario. 59% of customers claim that they now give the customer experience greater weight when deciding which business to purchase from. The technologies of enterprise resource planning (ERP) are essential for supplying the information required to provide those client experiences. ERP systems are now required to integrate with customer-facing systems like Customer Relationship Management (CRM), e-commerce, and customer care, among others, to enable a smooth customer journey. 

ERP systems were previously used as back-office processes managing accounting and financial data. Businesses want a cutting-edge strategy for ERP integration that gets them beyond obstacles and puts them on the way to provide remarkable client experiences. 

Did you know? According to research, 75 per cent of ERP integrations ultimately fail due to misconceptions. This might be the failure of the entire system or the failure to accomplish a specific objective.

What is ERP?

All-sized businesses frequently utilise enterprise resource planning software to automate and simplify operational processes. This could include accounting, supply chain management, and human resources. The ability of ERP software to function as a centralised data hub for various activities is one of its key benefits. It facilitates the sharing of data insights between departments. Additionally, operations across departments that traditionally require human completion are automated by ERP systems. For instance, an ERP may use data from a sales order to send your company's accounting software the relevant financial data instantly. 

Also read: How to Use TallyERP.9 to Create Tax Classification

What is Integration? 

Integration is a technique of linking ERP software to different platforms in order to guarantee the sharing of consistent data and automate business processes. It helps organisations tailor and choose precise tools they wish to include in their solutions by influencing the interactions between ERP software as well as other provider systems. The newer ERP approach is the most strong variant of integration. This approach is a novel technique to create a customised ERP system for a business that ultimately builds a unique ERP software using solutions from several providers.

Even if you choose a more conventional ERP system, integration can help operations run more smoothly by enhancing connectivity across different modules. It takes a lot of effort, for instance, to enter data produced by your ERP into a separate application. Integration can speed up this process and lessen the chances of human mistakes. For your company, a human mistake can have major consequences. A mistake may not mean life or death for your company, but it may hinder productivity. 

Inconsistent data and difficult workarounds are increasingly likely to become a part of your daily operations as your company grows and your software packages get more sophisticated. Since ERP software centralises information, it is essential for lowering the possibility of wasteful operations. Additionally, it results in better transparency and more effective staff cooperation. 

ERP Integration Benefits 

We can delve into more depth now that we have a fundamental grasp of ERP integration and what it actually accomplishes. Let's look at some of the main advantages of integrating your ERP system and how it might help your business. 

Centralized Data 

Workflows inside your company might be greatly benefited from having all of the company data in one easily accessible area. For instance, the sales team wouldn't need to contact the accounting department every month to get an updated record of sales income. In the end, centralising data aids in streamlining corporate operations and decreases the time required to fetch information from colleagues in other departments to perform crucial activities.

Automated Processes 

The more automation, the better. ERP interconnections can synchronise workflows and departments' procedures. It decreases the time needed to execute activities and the quantity of manual work needed.

Workflow Visualization 

Data consolidation and improved task and process visualisation are mutually beneficial. Additionally, connection with a product like a project management software enables staff members to view the projects that their colleagues are engaged in. When asking a co-worker for comments or giving assignments a priority order, this might prove helpful. For instance, you could lower the urgency level of your request when your manager is operating on a request made by the CEO while you require a routine report from them. 

Reduction in Human Error 

There is a chance to lessen human mistakes since ERP system integration can raise the level of automation in corporate operations. Automation is quite advantageous since mistakes and messages sent to the wrong customer might negatively affect your organisation. An improvement in this area might give your business a competitive edge because of the enormous number of mistakes humans make daily.

Also read: Everything about Multi-Currency in Tally.ERP 9

More Time for Labor-intensive Projects

Employee time may be used for other projects when you decrease the time spent on activities like data entry. Your staff will now have more availability for crucial activities that require manual interaction thanks to the vast range of operations that may be automated, increasing productivity. 

Types of Integrations 

CRM 

A good communication system and providing your consumers with excellent customer service are two key components of a successful business. A "best of breed" customer relationship management (CRM) technology is essential for maximising your client interactions. It is because providing excellent customer service may provide you with a significant competitive edge. Due to the relative popularity of CRM and ERP connection, it may be one of the simplest integration on the list. Also, because of a crucial link between demand and supplies, you are strongly advised to integrate your CRM programme with your ERP. The sales and marketing process can be more streamlined because of this integration between CRM and ERP. 

Business Intelligence 

Business intelligence software is one of the most helpful technologies now on the market. Business intelligence (BI) technology assists organisations in finding insights that result in new profitable endeavours or business practices by gathering and analysing internal data. New software deployments frequently start with the insights gained from BI software analytics. These priceless insights are made accessible to any authorised employee at any moment by linking your BI system to your ERP solution. 

Human Resources 

A productive workflow is essential since the HR department is among any sector's most comprehensive back-office requirements. After all, the HR department is the one that works with every individual in your company, irrespective of title or position of leadership. By integrating the abilities of your HR provider into the workflows of the ERP system, you can keep a record of and streamline time-consuming back-office operations. 

Project Management 

A project management option is present in many ERP systems. It's not certain that the project management software used in an ERP is as complex as the standalone software you're presently using. The ability to collect all essential business activities, procedures, and workflows in one location makes project management integration very helpful. The status of each project, who is working on it, and when it will be finished can all be seen by an employee at any moment. This can save a lot more time. 

eCommerce 

The chief buzzword of “efficiency” is the primary advantage of e-commerce integration. Due to the sheer data gathering required for deployment, integrating e-commerce software might be advantageous for any company that processes orders. Orders, inventories, customer information, and shipping-related data are among the most crucial pieces of information businesses gather. When this data is accessible across your platforms, you may increase productivity by automating the data transmission process and doing away with any need for human input. 

When looking for ERP integration, these five categories of third-party software are crucial and common characteristics to consider. It is essential to make sure that the process runs as smoothly as possible from the moment you begin. Seek clarifications from your ERP supplier about which third-party systems it can integrate with. 

Also read: Calculation of VAT Based on Quantity for Petrol and Diesel in Tally - VAT in Tally

Approaches 

The integration of ERP connectors may be done in a few different ways. Your particular business will determine the optimal ERP system integration choice for you. It may be based on a variety of factors, including the existing systems you are using, the available integration budget, and whether you utilise on-premise software, cloud-based software, or a combination of both.

Here are a few ERP integration strategies you might want to take into account: 

Point-to-point 

A point-to-point integration connects every software or tool separately to the ERP programme. This solution has the drawback that each network you want to utilise requires a different integration, which is a hassle. In addition, when more and more tools are introduced, the process may become complex. However, due to its low entry barrier, some businesses choose to adopt point-to-point integration. 

Custom Applications 

For the purpose of integrating different business systems, some businesses may decide to create their own proprietary apps. Custom apps frequently begin with the ability to transfer data but may develop to include other tasks and processes. Point-to-point integration and custom apps both have the drawback of being difficult to maintain as a business expands and adds new tools to its software inventory

Enterprise Service Bus (ESB)

The newest and best in the integration industry are ESBs. Programmes in an ESB are linked together via a "communication bus." The bus acts as a hub for communication amongst the apps. The benefit of integrating in this manner is that since the bus centralises all communication, other applications don't need to be modified when a new component is introduced. Compared to using point-to-point integration or bespoke apps, this procedure is simpler. 

Challenges 

Integration of ERP systems is very advantageous, but it's not simple.  When choosing and customising the solution that's best for you, it's crucial to bear in mind the many factors that might cause ERP systems and integrations to fail. Here are a few potential obstacles to take into account before implementing your solution. 

IT Integration Needs the Support of a Coherent Strategy 

Selecting an ERP system is a crucial strategic decision. It's important to first take into account how the business functions and then connect a possible ERP solution with the corporate goals. It’s a must-do to identify which software would be most beneficial for your business. Determining your ERP solution should be the first step in the software selection process. 

You should, for instance, think about the kind of service that your company needs to deliver. For example, you should keep this in mind and let any software providers you work with know if your business needs shipping labels of a particular size. You may lessen the stress on the IT staff and improve your chances of a successful deployment by preparing a list of requirements and a specific ERP integration plan

Maintenance and Updating of ERP Integration 

You might need to think about how maintenance of the installation will function based on the ERP connectors technique you pick. If you choose a point-to-point integration, you'll probably need to upgrade and modify your system as components are added and deleted. When choosing an integration technique, it's crucial to bear in mind that there can be a cost involved with upgrading your software. 

ERP Integrations with Cloud Solutions are a More Affordable Option

Integrating legacy apps that weren't intended to work with other systems can be expensive and challenging. Some problems can be solved using middleware software; however, these solutions can be expensive, require customisation, and involve manual procedures. Modifications to on-premises systems are another option that may be costly. A viable substitute would be cloud-based systems that interact with many forms of ERP. 

They provide a pay-as-you-go paying alternative and are more adaptable and economical, which may reduce the overall cost of operation. This doesn't suggest that businesses would have to switch to an all-cloud ERP, though. But many businesses may benefit from transferring certain services to the cloud. As more commercial ERPs offer cloud support on their on-premise platforms, this alternative is becoming more practical and helping to satisfy specific business demands. 

Also read: Tally Prime Data Migration & Backup from Tally ERP 9

Conclusion

Enterprise resource planning platforms positively impact the productivity and financial performance of businesses of all sizes. ERP software is continually modifying and adjusting to business requirements, much like most companies working in the technology industry. ERP integration is so common in businesses today because of this. Its customising options are alluring and frequently fruitful. Before choosing an ERP system integration approach or an ERP vendor, you should consider the kinds of tools you want to include in your system and the integration type that would be most beneficial for your business. After all, you have a lot of options in the modern technology sector. 

You can use the Biz Analyst application to manage your business effectively. It syncs with Tally data making it easy to access even if you’re offline or on the go. You can manage the accounts, create ledger entries, access business reports, and more to keep your business on the right track.

FAQs

Q: What is the critical issue in ERP implementation?

Ans:

Top management's devotion, program reengineering, the ERP's integration with several other business information systems, the choice and strategic planning of advisors and staff, and employee training on the new system are crucial factors that must be carefully taken into account to ensure successful implementation.

Q: What is the differences between non-integrated and integrated system using ERP?

Ans:

An independent or non-integrated EDI doesn't function in unison with the ERP system. In contrast to an integrated EDI, which dynamically dilates the work cycle on purchase requisitions, it would thus require more manual processing.

Q: What is integration and its importance?

Ans:

Integrations are linkages between programmes and systems that cooperate in exchanging data and information. Integrations interconnect the software so that it may all be used together seamlessly. They are based on APIs (application programming interfaces), which enable the exchange of information across programmes.

Q: What are the risks associated with ERP systems?

Ans:

  • End-users do not receive enough training or retraining
  • Inability to find and keep competent systems programmers
  • Inability to Secure Employee's Full-Time Commitment to Project 
  • Project management responsibilities
  • Insufficient integration

Q: What is business integration, and how do the ERP systems achieve IT?

Ans:

Aligning organisational strategy and objectives with information technology is known as business integration. Integration with an ERP is generally required to liberate segregated data and improve company outcomes and procedures.

Q: What Are the Challenges of Implementing ERP?

Ans:

  1. Data protection- ERP may be a benefit or a burden in data security.  
  2. Overall price- While the per-capita IT expenses of ERP systems may be cheaper, especially in areas like training, the initial expenditures are usually always more significant. 
  3. Customisation.

Q: Why ERP integration is essential?

Ans:

ERP integrations will hasten up the movement of information across your systems, assisting in expediting processing orders, shipping, invoicing, and other processes. This will save costs and save employees time while increasing customer satisfaction.

Q: What are the benefits of ERP?

Ans:

  • More accurate business reporting tools with real-time data 
  • Better access to consumer information 
  • A reduction in inventory costs 
  • Increased cash flow 
  • Cost reductions. 
  • Improved cloud and data security
  • Advancements in business processes 
  • Supply chain administration

Q: What is ERP integration?

Ans:

ERP integration links and synchronises ERP software with other programmes and data resources. Whether the data comes from the ERP or other sources, ERP software integration provides you with a unified picture of information from several systems in real-time.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
×
mail-box-lead-generation
Get Started
Access Tally data on Your Mobile
Error: Invalid Phone Number

Are you a licensed Tally user?

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.